--- title: "Why Jim Cramer Believes Starlink Could Crush Traditional Telecom Giants Like AT&T" type: "News" locale: "en" url: "https://longbridge.com/en/news/286911580.md" description: "Jim Cramer advises against investing in AT&T, highlighting competition from Elon Musk's Starlink and Amazon in rural internet markets. He believes traditional telecom companies will struggle against emerging satellite networks. Cramer emphasizes that the future of rural connectivity lies with low-earth orbit disruptors, making AT&T's heavy debt and legacy status risky for investors." datetime: "2026-05-19T12:16:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286911580.md) - [en](https://longbridge.com/en/news/286911580.md) - [zh-HK](https://longbridge.com/zh-HK/news/286911580.md) --- # Why Jim Cramer Believes Starlink Could Crush Traditional Telecom Giants Like AT&T **Jim Cramer** is pouring cold water on **AT&T Inc.**'s (NYSE:T) massive 5G network expansion, warning investors that emerging satellite networks from tech billionaires will easily outpace traditional telecom companies in rural markets. ## **The Threat From the Sky** During a recent episode of CNBC's “Mad Money,” a caller pitched AT&T as a potential long-term play, citing the telecom giant‘s move to purchase roughly $23 billion worth of EchoStar's nationwide spectrum. The primary goal of the acquisition is to bridge coverage gaps, bolster the 5G network, and lock in rural customers. However, Cramer was quick to reject the stock entirely. “I don’t want to be in AT&T,” Cramer stated. He pointed directly to the rapidly expanding satellite internet market, which is currently being pioneered by **Elon Musk**'s SpaceX and **Jeff Bezos**'s **Amazon.com Inc.** (NASDAQ:AMZN). “I also am very concerned about rural. I’m very worried about Starlink,” Cramer explained. He emphasized that both Starlink and Amazon’s Low Earth Orbit (LEO) satellite internet initiatives are going to be “considerable competitors to the rural part of a company like AT&T.” **Read Also: AT&T Offsets Legacy Slump With Solid Wireless Growth** ## **A Good Thesis Trumped By Reality** The caller argued that, despite AT&T’s already high debt load, securing reliable satellite coverage could meaningfully reduce dead zones and build strong brand loyalty in both enterprise and rural segments. While Cramer politely acknowledged the fundamental logic behind the caller’s financial pitch, he firmly believes the impending satellite war makes traditional telecom plays far too risky for current investors. “I think you’ve got a good thesis, but I trump it with mine,” Cramer concluded. Instead of tying up capital in heavily indebted legacy carriers fighting for rural ground, Cramer’s cautionary advice highlights a major shifting paradigm in tech and communications. According to him, the future of rural connectivity likely belongs to low-earth orbit disruptors rather than traditional ground-based cell networks. ## **How Has AT&T Performed In 2026?** In comparison with the S&P 500’s 7.94% year-to-date advance, shares of AT&T have fallen by 1.65% over the same period. It closed 1.66% higher on Monday at $24.43 per share and it was 0.041% higher in premarket on Tuesday. Over the last month, AT&T stock was down 7.85%, and it declined 4.57% and 11.87% over the last six months and the year, respectively. **Benzinga’s Edge Stock Rankings** indicate that T maintains a weak price trend in the short, medium, and long terms, with a moderate value ranking. **Read Also: Transcript: AT&T Q1 2026 Earnings Conference Call** **_Disclaimer:_** _This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors._ _Image via Shutterstock_ ### Related Stocks - [T.US](https://longbridge.com/en/quote/T.US.md) - [IYZ.US](https://longbridge.com/en/quote/IYZ.US.md) - [XTL.US](https://longbridge.com/en/quote/XTL.US.md) - [XLC.US](https://longbridge.com/en/quote/XLC.US.md) - [IXP.US](https://longbridge.com/en/quote/IXP.US.md) - [SATS.US](https://longbridge.com/en/quote/SATS.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [T-A.US](https://longbridge.com/en/quote/T-A.US.md) - [TBB.US](https://longbridge.com/en/quote/TBB.US.md) - [T-C.US](https://longbridge.com/en/quote/T-C.US.md) ## Related News & Research - [SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history](https://longbridge.com/en/news/286722705.md) - [AT&T Reaffirms Q2, Long-Term Outlook](https://longbridge.com/en/news/286888080.md) - [Elon Musk reveals how SpaceX is always on board Air Force One](https://longbridge.com/en/news/286285506.md) - [Delta Airlines rejects Starlink, and the reason will probably shock you](https://longbridge.com/en/news/286423902.md) - [The 'Elon Musk Effect' Could Send SpaceX Stock Into Wild Swings After IPO Even If Starlink Makes 'Billions' In Profit, Warns Expert](https://longbridge.com/en/news/286923494.md)